The project psychologist – Part 6 - Governance

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Introduction

The term governance can mean different things depending on the context. In program management, it refers to the systems, processes, and structures used to define, authorize, monitor, and support a program . It also includes how the program team manages and oversees the parts that contribute to the program’s success. Governance is an important aspect regarding the behavior of stakeholders in a project.

What makes governance remarkable is its ability to influence behavior. It shows how structured systems and processes have impact on how people act. Governance isn’t just about following rules—it’s a framework that guides individuals and groups to work toward shared goals.

Governance aligns behavior without directly controlling people. Instead, it uses policies, procedures, accountability rules, and cultural norms. This indirect approach makes governance a subtle but powerful way to guide behavior.

Governance isn’t also a “one-size-fits-all” system. It adapts to the specific needs of the program, the stakeholders involved, and the organization’s culture.

Governance Principles

An effective governance is underpinned by the following core principles:

1. Interest in the Outcome: All stakeholders must be invested in the success of the program and its results. It is important that there is broad support. Both among the business owner and in the delivery organisation. The way senior stakeholders show their commitment to the result is visible to all involved.
2. Access to Resources: Ensuring the necessary resources are available for the program to thrive. Having resources available indicates that management prioritises the programme. This influences the energy and willingness to deliver.
3. Balancing Power: To counter our cognitive biases, Incorporating checks and balances to prevent undue concentration of authority in programs is critical.
4. Reciprocity: Relationships are important for well-functioning programs. Governance requires therefor a dynamic give-and-take process among stakeholders.
5. Clear Expectations: Establishing and communicating expectations to ensure alignment across all parties. Expectation management and expectations themselves are very important in the success of solution implementation. If it is clear what is actually being delivered and also what the omissions are, the solution is more likely to be embraced by the organisation.

Practical Guidelines for Effective Governance

To implement these principles successfully, consider the following practical guidelines on people, formal structure and leadership.

?People

When establishing governance for a project or program, it is vital to focus not just on ensuring that all roles are formally assigned but on involving the right people—those with a real stake in the program's success. Engaging individuals who have an interest in the outcomes ensures that the necessary resources are made available, and the program is given the priority it requires.

The impact of involving the right people extends beyond resource allocation and prioritization. By including stakeholders in the governance structure, they become inherently invested in the program’s outcomes, creating a shared sense of accountability and ownership. In this manner governance participants are transformed into active contributors to the program's success rather than passive overseers.

Governance effectiveness relies heavily on strong relationships built on mutual respect and trust. When these elements are present, they enhance collaboration, improve communication, and create an environment where challenges can be addressed constructively. Trust and respect ensure that stakeholders are more willing to share resources, exchange ideas, and support one another in achieving program objectives

To strengthen this alignment and commitment, it is beneficial to harmonize the key performance indicators (KPIs) of the primary stakeholders involved in the governance process. When KPIs reflect shared objectives and program goals, they serve as a unifying force, driving collaborative efforts and ensuring that everyone is working toward common outcomes.

Moreover, this approach creates a feedback loop: governance not only steers the program effectively but also reinforces the engagement and motivation of the stakeholders. When individuals see their interests reflected in the program’s governance and outcomes, they are more likely to invest their energy and resources, creating a cycle of participation and success.

Formal structures

Governing bodies can have different names, and the same naming of governance bodies might mean different things in different organizations. It’s important to create a clear structure that suits the program’s needs and goals. And setting clear responsibilities in the governance structure is of importance.

The right choice often depends on your organization’s culture and practices. For program managers, picking the setup can help shape the desired behaviors and outcomes. If decision-making is key, a Steering Committee (SteerCo) is ideal. It includes senior leaders who make strategic decisions and provide high-level guidance. For strategic support, a Sponsor Board works best. It brings together stakeholders who ensure the program gets the visibility it needs. And if coordination is the focus, a Program Board is most effective. It helps align project teams, resolve dependencies, and track overall progress.

?The ?governance structure should meet the program’s specific needs while ensuring clarity, accountability, and efficiency. Choosing a name that reflects the purpose of the group also helps set clear expectations. There’s no one-size-fits-all solution—adapt the approach to fit the organization’s goals, culture, and way of working

Checks and balances are essential for a program’s success. They help manage risks, ensure accountability, and keep the program aligned with its goals. The table below, based on an article by Bent Flyvbjerg, lists ten behavioral biases. While this article doesn’t go into detail about each bias, it’s clear that many forces can affect a program’s outcomes.

Biases like optimism bias or strategic misrepresentation can influence decisions, resource use, and stakeholder expectations. If ignored, these biases can lead to unrealistic plans, poor decisions, and even program failure. Recognizing these biases is the first step toward addressing them effectively.

A program manager often feels pressure to speed things up, deliver quickly, and keep momentum high. In this context, checks and balances may seem like an unnecessary delay or added bureaucracy. But while they might slow things down in the short term, they ultimately help prevent bigger issues down the line. By addressing risks and ensuring sound decisions, these measures save time, effort, and resources in the long run, increasing the chances of program success. On the other side of the balance the moment is key for success and decisions.

Source: (Bent Flyvbjerg, 2021)?

Another mechanism in the governance steering is escalation. In cultures like the Dutch, there is often a strong preference for making decisions by consensus, where everyone must agree. While this can encourage collaboration, it can also delay decisions and impact the program's timeline. Therefore, it's important to have clear escalation processes in place, with the understanding that it’s okay to disagree. Escalation should be seen as a way to offer different views on solutions and priorities, not as a personal issue.

For escalation to work well, it’s important to create an environment where disagreements are accepted and seen as part of the decision-making process. This way, escalation becomes a tool for finding the best solution, rather than a source of conflict. It helps keep the program moving forward.

However, escalation isn't just about making a decision—it’s also about making sure the decision is carried out effectively. Even after a decision is made, people might continue to debate it, which can slow down progress.

In these situations, the idea of “disagree and commit” is important. This means that, even if people don’t agree with a decision, they still commit to supporting its implementation and helping to make it work. This approach keeps the program on track and ensures that everyone is working together towards the same goals, even if they have different opinions.

In short, having clear escalation processes and encouraging respectful disagreement are key for making decisions quickly and ensuring they are followed through successfully. By addressing these issues, you can keep the program moving forward and achieve its goals despite different perspectives.

Leadership

Leadership is the driving force behind effective governance in programs. While governance provides the formal framework, leadership provides the direction, motivation, and execution that makes that framework function effectively.

Governance provides the "what" (structures, processes, rules), but leadership provides the "why" (vision, purpose, strategic alignment). Leaders translate organizational goals into a clear vision for the program, ensuring everyone understands how their work contributes to the bigger picture. This shared understanding is essential for effective collaboration and decision-making within the governance framework.

While governance defines roles and responsibilities, it is leadership that creates a culture of accountability. Leaders hold individuals and teams responsible for their commitments, ensuring that decisions are made and actions are taken within the established governance structures. They also facilitate timely and effective decision-making by providing clear communication, facilitating discussions, and empowering teams to take ownership.

Governance outlines stakeholder engagement processes, but leadership builds and maintains strong relationships with stakeholders. Leaders understand the needs and expectations of different stakeholders and ensure effective communication and collaboration. They navigate complex stakeholder dynamics, resolve conflicts, and build consensus, which is crucial for the smooth functioning of governance mechanisms.

Finally, governance provides a stable framework, but leadership provides the adaptability and resilience needed to navigate change. Programs operate in dynamic environments, and leaders must be able to adapt to changing circumstances, manage risks, and make necessary adjustments to the program while staying within the governance framework. They provide a sense of direction and stability during times of uncertainty, ensuring that the program stays on track.

In essence: governance provides the blueprint for how a program should be managed, leadership provides the execution that brings that blueprint to life.

The effective working of the governance is also strongly influenced by the leadership styles.

The most common used leadership styles we recognize in program governance :

1. The Autocratic leadership style is the traditional one. It is a style where leaders make all the decisions and do not involve their team in the decision-making process. With that being said, an autocratic style is best used in situations where time is of the essence and a quick decision needs to be made.
2. The Democratic leadership style focuses on involving teams in the decision-making process and values the input of all members. This style is best used in situations where a consensus needs to be reached and everyone’s ideas need to be considered.
3. In the Transformational leadership style leaders inspire their team like role models to work towards a common goal and also to become better people. They lead by example and set high standards for their team to follow. They focus on the individual needs of their team members and help them to set and achieve personal and professional goals.
4. The Transactional leadership style focuses on clear, defined roles and responsibilities, and emphasizes the maintenance of the status quo. Transactional leaders establish clear guidelines and procedures to follow and hold team members accountable for meeting established goals and objectives. They use rewards and consequences.

Leaders establish their position by asking the right questions and challenges the organisation. They can steer on the governance by creating the team including looking at the different styles these leaders perform.

Without strong leadership, governance structures can become bureaucratic and ineffective. However, without a strong governance framework, even the best leaders can struggle to achieve program success. Therefore, effective governance and strong leadership are mutually reinforcing and essential for successful program outcomes.

This is an extra and last article in our series. Previously, we explored behavioural considerations affecting “The Why”, “Planning the Change”, “Drive the change”, “Steer on value” and “Result and outcome”.